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ABSTRACT
Though consumption culture and globalization are major themes impacting the modern landscape, there has been limited research in these areas due to, in part, the increasing fragmentation of markets. A case is made that the seemingly disparate views, cultural fragmentation and global segmentation can be harmonized. This paper presents a theoretical framework to understand how the fragmentation of markets and global segmentation strategies can be compatible. Due to the cultural convergence brought on by globalization and marketing intermediaries, global segments can be identified through the common needs sought by consumers.
Keywords: Globalization; Consumption; Brands; Market Segmentation
INTRODUCTION
Globalization of markets has been an ongoing debate since Levitt's (1983) argument for standardization. There are two major opposing arguments at work: 1) There is increasing homogeneity of markets or 2) markets are becoming more fragmented. The argument of this paper is that due to me increasing spread of technology and media, there are homogenous groups of consumer segments that transcend country boundaries (Sheth and Parvatiyar, 2001) and mat this, in turn, harmonizes die two arguments when one recognizes that if segments are understood by die benefits sought by the consumers when can then create segments from the fragmented groups. This paper will attempt to justify this argument by reviewing the impacts of globalization on consumption culture, brands' roles in creating and satisfying needs, and subsequently, the need for a new understanding of market segments.
FRAGMENTATION, SEGMENTATION AND NEEDS
By viewing different cultures and population around die world, it may be noticed mat people's needs and aspirations are similar. People, in general, may be more alike around the world man different, and this is especially true when one looks at peoples' interests as people with similar interests gravitate toward each other, irrespective of nationality. Almough studies, such as Hofstede (1992) and Trompenaars (1997), note that countries are found to be different on certain aspects, such as locus of control, time perspective, and risk, these generalist macro views are not actually useful for marketers (Mahlhotra et al 1998). Why? Because marketers do not market to countries as a whole, but to me members of consumer segments within those countries. It is the contention of this paper that there are consumer segments mat span cultural, geographic, and...